Holywood News

New York Champagne Bar, manages Trump tariffs with smaller dumps

The flute may soon be reduced due to tariffs on European imports including French wine and champagne bars in New York City.

Hervé Usseau, owner of Flûte Bar, said he is considering pouring about 10% less per cup of French bottles to avoid raising prices, and he plans to make expectations with customers. “We’re going to explain what we’re doing, and even do some Instagram reels to talk about it,” he said.

Earlier this week, President Donald Trump announced a 90-day pause of “mutual tariffs” just 13 hours after it came into effect, affecting dozens of trading partners, including the EU. During the pause, tariffs remained 10% in most countries, although sudden policy whipping promoted market volatility. If a 20% EU commodity tariff is imposed, Rousseau intends to start a smaller pour.

This move is a noticeable example of narrowing down: get a little less for the same price. Companies generally want most people not to notice or care.

Not just a champagne bar. Last year, a lender analysis found that about one-third of nearly 100 everyday products over the past four to five years. Products like toilet paper and tissues are the most affected, and sheets with fewer rolls will shrink.

Flûte is hiding in a preface to Midtown Manhattan, with 75% of its wine stock coming from Europe, mainly France. So far, bars have not felt the stimulus of tariffs. Rousseau said he has U.S. suppliers in stocks that could last for a month or two. But he expects that once the pressure is exhausted, the pressure will be generated.

Rousseau said he was not overly concerned about his tariffs – Flûte encountered many crises in 27 years (from 9/11 to 2008 financial crash). “New York always adapts,” he said, adding, however, if the broader economy is hit by price pressure, it could be a bigger problem.

Rather than raising the price immediately, he intends to focus on Intîme, a sparkling wine from Long Island, exclusive to Flûte. Champagne alternatives are made using organic ginger from French recipes from the 1920s and are produced using the traditional champagne method. “This is the only person in the world who does this,” Rousseau said.

He also leans more towards champagne cocktails, which use only a lot of French champagne on most household ingredients. “Because it may be only 10% or 20% of champagne, we can keep the price more stable,” he said.

Rousseau said he might have covered some expenses if big-name champagne factories raise prices, but thought it was an opportunity to interact more deeply with customers. “We will go deeper into the wine and provide more context and storytelling,” he said. “It’s a great opportunity to turn it into an experience.”

Flûte is not alone in preparing for the impact. Even before the current tariffs came into effect, wine and spirits businesses were already looking for a response to uncertainty.

Last month, President Trump threatened to impose a 200% tariff on European wines and spirits proposed by the EU for a 50% tariff on U.S. whiskey. Wine collectors stopped, so some restaurants started stocking.

The EU later abandoned whisky tariffs. Although Trump has not officially withdrawn his retaliatory threat, the pressure has been eased – at least for now.

Other businesses are adjusting, not by shrinking the dump or packaging, but by showing American brands.

Merchant hospitality, which runs restaurants across New York, is using the trade war to focus on U.S. producers — from boutique winemakers like Keelok and Antique Terra to family spirits like Whistlepig and St. George. “We think it’s an opportunity, not a setback,” said CEO Abraham Merchant.

Full Glass Wine Co., which owns online wine brands such as Wine In-house Wine and Scout Hall and sells it directly to consumers, he also bought more U.S. wines and worked with suppliers to absorb costs. The company said about 30% of its portfolio comes from Europe.

“We’re going to redistribute a little bit,” said CEO Louis Amoroso. “And we have a smaller margin.” The company also plans to rely more on household sparkling wines including California, to offset the tariff pressure on Champagne.

This article was generated from the Automation News Agency feed without the text being modified.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button